Soybean, rapeseed and palm oil contracts in China rose after the US MSG report was released

Published 2025년 1월 14일

Tridge summary

China's soybean oil and meal futures experienced a significant one-day price surge, with soybean meal futures seeing the largest gain since 2023 on the Dalian Commodity Exchange. This increase is largely due to the rise in soybean prices on the Chicago Board of Trade following a US Food and Agriculture Organization report that indicated lower U.S. soybean production forecasts and decreased ending stocks due to dry conditions. Additionally, concerns about a global supply crunch have been exacerbated by falling December inventories of palm oil in Malaysia. While prices for soybean, rapeseed, and palm oil in China have risen, market transactions are decreasing as Chinese markets prepare for the Spring Festival holiday. China, the world's largest soybean importer, set a record for soybean purchases in 2024, buying 105.03 million tonnes, as importers sought to secure supplies from the U.S. amidst potential trade tensions.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

China's soybean oil and meal futures on Monday posted their biggest one-day gain since 2023. Rapeseed meal and palm oil futures also rose as the price of soybeans on the Chicago Board of Trade rose on the "upbeat" US MSG report. The most active soybean meal futures on the Dalian Commodity Exchange rose 3.2% to a monthly high of 2,724 yuan/tonne, or $371.54/tonne, the biggest one-day gain since July 2023. Dalian soybean oil futures rose 2.5% to their highest since Jan. 3 at 7,718 yuan/tonne, while palm oil (CPO1) rose 2.7% to 8,720 yuan/tonne. On the Zhengzhou Commodity Exchange, the most active futures contract for rapeseed meal rose 3.3% to a six-day high of 2,340 yuan/t. In a report on Friday, the US Food and Agriculture Organization of the United States (FAO) said its forecast for U.S. soybean production was lower than expected and its estimate of ending stocks was lowered due to dry conditions at the end of the growing season. This sent soybean and soybean oil prices in ...

Source: Graintrade